Seeking Alpha

Michael Michaud's  Instablog

Michael Michaud
Send Message
Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
My company:
Invest2Success
My blog:
Invest2Success Blog
  • Copper & Mining Stocks Bullish Forecast 0 comments
    Jan 1, 2013 7:10 PM | about stocks: IEMMF, XSRAY, KGHPF, GMBXF, HBM, ANFGF, SCCO, LUNMF, KZMYF, COPX, JJC

    Copper ETFs and Copper Stocks About To Move Big By
    The Gold and Oil Guy

    With 2012 now behind us it's time to start looking for some new long term investments which have big potential gains in the new year. Copper is one metal that has caught my eye.

    The long term monthly chart of the copper ETF JJC shows a potential cup and handle pattern accompanied with bullish volume characteristics. Last year copper traded sideways in a narrowing range. This type of price action tends to bore traders and investors forcing them to look elsewhere for new to trades. The saying is "If the market doesn't shake you out, it will wait you out"

    You can see on the monthly chart that the interest in this commodity diminished. You can tell because of the sideways movement and declining volume. I like to focus on investments which are out of favor but are showing signs of another big trend starting. getting on the train before it leaves the station can make for a fun ride. I do post some of my trading ideas with my charts updating live each day here: stockcharts.com/public/1992897

    Take a look at the charts, analysis and my best copper stock setup below:

    JJC - Copper Total Return ETN Profile

    Description: The index includes the contract in the Dow Jones-UBS Commodity Index Total Return that relates to a single commodity, copper (currently the Copper High Grade futures contract traded on the COMEX).

    Copper

    Copper Miner Stocks ETF COPX - Weekly Chart

    This ETF holds a basket of copper mining stocks which is showing signs of a new trend starting. Take a look at the top holdings stocks and fund breakdown to get a feel for the exposure it provides.

    COPX Top Ten Holdings

    Inmet Mining Corporation (OTC:IEMMF): 6.62%
    KGHM Polska Miedz SA (KGH): 5.24%
    Xstrata PLC (XTA): 5.04%
    Grupo Mexico, S.A.B. de C.V. (GMEXICO B): 4.89%
    Jiangxi Copper Company Limited H Shares (00358): 4.83%
    HudBay Minerals, Inc. (HBM): 4.82%
    Antofagasta PLC (ANTO): 4.78%
    Southern Copper Corporation (SCCO): 4.75%
    Lundin Mining Corp (OTCPK:LUNMF): 4.55%
    Kazakhmys PLC (KAZ): 4.55%

    Copper

    Copper

    Best Copper Stock Setup - LUNMF

    After reviewing the main holdings in this fund I noticed one stock that looks ready to start a new bull market. Lundin Mining. shares look to be building a Stage 1 base and could break out and start to rally any week. Keep in mind 3/4 stocks move with the broad market so we do want the major indexes to find a bottom or at least trade sideways if we want copper stocks to start their run.

    Copper

    Copper Futures, ETF and Stock Trading Conclusion:

    Copper has lost its shine over the past 12 months but could start to make headline news in the near future. I like both COPX and LUNMF if we see further strength.

    Click Here to Review and the Gold and Oil Guy Newsletter

Back To Michael Michaud's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.